The Chinese government will take further measures to expand domestic demand this year in order to maintain a healthy economic growth.

Minister Zeng Peiyan of the State Development Planning Commission pledged a series of policies aimed at stimulating domestic demand at a press conference held in Beijing on January 4.

The minister said the government's policies to expand domestic demand have proved effective over the past two years, and such efforts will continue to further boost internal spending and relieve stagnant deflation.

He said China will do away with all policies unfavorable to private business and investment in the areas of taxation, land use, and foreign trade, and that private businesses will be able to enjoy opportunities on an equal-footing with state-owned enterprises.

He said that private investment will be allowed to enter all industries, except sectors concerning state security and those in which that the state must hold the market.

He expressed confidence that China will maintain at least a 7.1 percent GNP growth rate this year, and that the country has sufficient foreign exchange reserves and more than 30 billion US dollars in foreign trade surplus, so there is no reason to devalue the yuan in the near future.

He attributed last year's economic growth to the country's issuing of treasury bonds. Last year, China issued more than 200 billion yuan (24 billion US dollars) of treasury bonds which contributed two percentage points to the GDP.

Zeng made a comprehensive analysis of the outcome of last year' s macroeconomic policy and remaining problems, and put forth the main goals and tasks for economic and social development this year.

He said concrete steps will be taken to develop western China this year, including additional preferential policies to help western China attract foreign investment and additional funds for projects in the underdeveloped western region of the country.